1-800 Flowers reported a decline in revenue and gross profit margin for Q2 FY2026, attributed to a strategic shift focused on marketing effectiveness and profitability. The company is undergoing a transformation aimed at cost optimization and organizational streamlining to achieve sustainable, profitable growth.
Net income increased to $70.6 million ($1.10 per diluted share) from $64.3 million ($1.00 per diluted share) in the prior year period.
positiveAdjusted net income increased to $76.7 million ($1.20 per diluted share) from $69.2 million ($1.08 per diluted share) in the prior year period.
positiveOperating expenses decreased by $23.4 million to $221.1 million, primarily due to lower marketing and labor costs.
positiveFree cash flow increased to $156.6 million for the six months ended December 28, 2025, from $128.3 million in the prior year period.
positiveTotal consolidated revenues decreased 9.5% to $702.2 million compared to the prior year period.
negativeGross profit margin decreased 120 basis points to 42.1% from 43.3% in the prior year period, primarily due to deleveraging on the sales decline.
negativeGourmet Foods & Gift Baskets segment revenues declined 3.8% to $499.0 million, with gross profit margin decreasing 120 basis points.
attentionConsumer Floral & Gifts segment revenues declined 22.7% to $181.2 million, with gross profit margin decreasing 180 basis points.
negativeBloomNet segment revenues decreased 3.1% to $22.1 million.
attentionAdjusted EBITDA for the quarter was $98.1 million, a decrease from $116.3 million in the prior year period.
negativeFor the second half of Fiscal Year 2026, the Company expects revenue to decline in the low double-digit range.
negativeFor the second half of Fiscal Year 2026, the Company expects Adjusted EBITDA to decline slightly compared to the prior year.
negativeInventories decreased to $148.9 million from $177.1 million in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Consumer Floral & Gifts | N/A | — | — | — |
BloomNet | N/A | — | — | — |
Gourmet Foods & Gift Baskets | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Teams remained focused on executing against key strategic priorities throughout the holiday period.
Made solid progress in cost-optimization and organizational-streamlining efforts.
Actions are strengthening the operating foundation and better positioning the Company to achieve sustainable, profitable growth.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.